Monday August 26, 2024
Mogadishu (HOL) — The National Identification and Registration Authority (NIRA) and the Somali Bankers Association (SBA) have officially signed a Memorandum of Understanding (MoU) to implement a National Digital Identification system for bank customers.
Somali Deputy Prime Minister Salah Ahmed Jama and other government officials attended the initiative's announcement in Mogadishu on Saturday, which aims to streamline customer identification, enhance security, and align the nation's banking practices with international standards.
The new system will empower Somali citizens to access banking services using a Unique Identification Number (UIN) linked to their National ID.
"This move is expected to tackle longstanding issues in Somalia's financial sector, such as identity fraud, money laundering, and the high costs associated with fragmented identity management systems. By ensuring accurate customer information and reducing financial risks, the National ID system is set to foster greater trust in the banking sector and encourage economic growth," according to the NIRA statement.
Somali citizens can now access banking services using their Unique Identification Number (UIN). This system, facilitated by the National ID, is expected to advance Somalia's economy by aligning banking practices with global standards.
"The initiative also aims to simplify banking procedures, ensure accurate customer data, and reduce the costs of managing fragmented identities," the statement added.
NIRA has already enabled Somali citizens to register for, obtain, and use their National ID, which is pivotal in accessing a wide range of essential services. In collaboration with the Somali Bankers Association, efforts are being made to increase public awareness about the importance of the National ID in improving economic development and ensuring secure access to financial services that meet international standards.
"This partnership between NIRA and the SBA is about more than just identification," NIRA Director General Abdiwali Tima'adde stated. "It's about empowering Somali citizens to fully participate in the global financial system and mitigate risks such as fraud, money laundering, and other legal violations."
Deputy Prime Minister Salah Ahmed Jama said the central role of the national ID card in the National Transformation Plan (NTP) is currently under formulation, noting that the agreement with the Somali Bankers Association is a major step towards formally integrating the Somali economy with global financial systems.
Somalia's Central Bank Governor Abdirahman Mohamed Abdullah stated that as the banking sector is working to establish the Credit Reference Bureau, the ID will serve as a primary reference with its Unique Identification Number, ensuring accuracy and reliability in credit assessments.
The initiative is part of a broader push to ensure that all Somali citizens can access secure and digital banking services and improve the country's economic landscape and financial inclusion.